New HYIP 12 by 12 Daily

Money is always interesting.  I just ran across a new HYIP site 12 by 12 daily.
They opened up and the first day got 4000 people to sign up which sounds great except for one small thing…  

These sites are all some kind of ponzi scheme which means to pay everyone you need a larger group of new people.  So what your really looking for is a site where you sign up then next week just enough people sign up so that they can pay you everything your owed. If you are the only person who signs up the first week then the 2nd week they only need 2 people to sign up to make money and pay you.

The problem with so many people signing up is that they all have to be paid. Look at it this way:

1. 1


2. 2


3. 4


4. 8


5. 16


6. 32


7. 64


8. 128


9. 256

If you’re the only one the first week it only takes a few hundered people to make it to week 9, on the other hand.

1. 4000


2. 8000


3. 16,000


4. 32,000


5. 64,000


6. 128,000


7. 256,000


8. 512,000


9. 1,024,000

So to make it 9 weeks you are going to need over a million people just to cover the people who signed up on the first day.  So having everyone pile in at first really doesn’t help you out much, you need people to slowly sign up then later when you need a million people to sign up to cover you then you need people to pile in – right at the end.

It will be interesting to see how this works out, but if they keep signing up people at the rate of 4000 per day it won’t be long until they can’t keep up.

Here is the HYIP site in case you think I am wrong about how many people they can sign up:

http://12by12daily.com/